Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
After giving up all of the gap up this morning, the Russell 2000 has impressively turned and put on a 1% gain. While not yet into the February range of 810 to 830, the turnaround is notable. The market has been back on hyper speed since the WSJ leak of potential “sterilized” QE yesterday 11 AMish. We are now back to Monday’s close on the S&P 500 and Tuesday has been completely erased. You have to tip your hat at that. We now see the S&P 500 about 13 points away from highs of the year reached last week, and as it stands mid afternoon has poked its head back over the 10 day moving average….. from where this index has run almost the entire year of 2012. The light volume, V shaped moves of the past few years continue.
At this point it appears the flood of central bank money, and continued promises for ever more when indexes even dip 1-2%, simply overwhelms everything. Normally people would be cautious ahead of an important data point as the payroll data, but certainly not today.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
